The auction of the Instant Lottery (Lotex) finally had no interested in participating. The deadline for the delivery of the envelopes closed at 1:00 p.m. on Monday (26), and the auction was scheduled to take place on July 4 at B3 headquarters in São Paulo.
According to Rita Serrano, Brazilians need to be clear that lotteries are not just entertainment or games of chance. "They are fundamental to the existence of many of the social programs that we know today, which can simply disappear, besides taking out of the Caixa an operation that contributes to the importance and maintenance of the public bank," warns the leader.
Caixa's lotteries, in a global manner, recorded in 2017 a collection close to R$ 14 billion (US$3.62bn). Of this amount, nearly half (48%) went to social programs in the areas of education, sports, culture, health and social security. This percentage could be reduced with the privatization of Lotex, since the auction provides social transfer of only 16.7%.
For the president of the National Federation of Staff Associations of the Federal Savings Bank (FENAE), Jair Pedro Ferreira, this is an important victory. "This is a significant step forward in our fight against the privatization of Lotex, which is the gateway to the delivery of other lotteries and Caixa itself. As we have already denounced to the Federal Public Prosecutor's Office, there are a number of problems, especially due to the losses to the bank, the treasury and the public interest," he says.
Jair Ferreira warned, however, that the mobilization against the auction of the Instant Lottery can not be reduced. "One of the risks, for example, is that the lack of interest is a strategy of companies to press for the reduction of the grant. This amount, R$ 542 million (US$140mn) for 15 years, is already very low, as we pointed out to the MPF. According to estimates, the concessionaire, in just one year, would collect up to 8 times more. It is a clear damage to the public coffers," he says.
Social transfers made by lotteries are also under threat, says the Fenae president. "Of all the revenue, almost half goes to areas such as culture, sports, education, safety and health. Already in the auction proposal of Lotex there is a reduction of this percentage to 16.7%, which opens the precedent for a decrease in the global. There is no interest in the private initiative and in the current government to guarantee these social transfers," says Jair Pedro Ferreira.
Auction values
Serrano also denounced that the values of the auction have been greatly altered in the last two years. "In 2016 it was speculated up to R$ 4 billion (US$1.03bn); in the first bidding, in 2017, with a concession of 25 years, the minimum value was almost R$1 billion (US$259mn). Now, the expectation has dropped dramatically, considering the minimum bid of R$ 542 million (US$140mn) for 15 years of concession, a questionable amount. "
According to estimates by Banco do Brasil, the winning concessionaire would collect, in only one year, about 7.6 times more than the minimum bid. On the other hand, Caixa would suffer loss of annual revenue of around R$ 4.2 billion (US$1.08bn).
Considering the evaluation of the Court of Auditors of the Union (TCU), the collection of the concessionaire would correspond to 4.5 times the minimum grant. "It is, therefore, an injury to the treasury and to the public interest," said Rita.
Juridical insecurity
There are other aggravating factors related to lotteries. The recent Provisional Measure (MP No. 841, June 11, 2017), which allocates funds to the National Public Security Fund, will receive most of the money collected. "Even without any auction, this MP already reduces the transfer of other beneficiaries, such as culture, sports, Fies," explains Rita.
It also draws attention to the exclusion of Caixa's participation in the auction, which is contrary to the public interest and popular economy. "Specifically in the case of Lotex, there is an additive amendment to MP 841 in order to guarantee Caixa's right to participate in the auction or that may subsequently have a corporate interest or, further, contractual integration with the winning consortium.”
Source: GMB
